The UK Customs and Excise department is expected to announce it will start levying VAT on telecom services from non-EU countries on 1 July.
The government agency had hoped to introduce tax from 1 April on services such as Internet access and call back which are usually operated by US companies. It will instead implement the policy on 1 July, the date specified by the EU member states when they agreed to change the law.
In February the member states agreed a derogation to the law which closes a loophole enjoyed by customers of non-EU telecomms suppliers because they are based outside the jurisdiction of the EU. However customers are now obliged to pay if the call originates from the EU.
The governments of France and Germany both began levying tax on 1 January. Austria and Italy will start implementation on 1 April. The other member states are expected to start charging tax on 1 July.
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